Showrooming in F&G 2013
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Showrooming in F&G 2013

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With the recent demise of many high street regulars such as HMV, Jessops and Republic, is it not surprising that people are looking for a scapegoat for increasing declines in sales, and this is ...

With the recent demise of many high street regulars such as HMV, Jessops and Republic, is it not surprising that people are looking for a scapegoat for increasing declines in sales, and this is seemingly falling onto internet shopping, and more specifically, the new phenomenon of Showrooming. Retailers whose main proposition is a physical store are thought to be generally on the back foot as they invest largely in retail space, staff, inventory etc., in a way which their online competitors do not have to. The difference in these overheads allows online stores to offer shoppers higher discounts on their goods, effectively undercutting physical stores on the same products…


Showrooming is the new big trend in retail, and we know it’s already a pretty big deal in the US (according to analysts, 59 million US shoppers will use their smartphones to showroom in 2013), but what about in the UK? Has it really caught on yet? Who are the main culprits? Why do shoppers showroom? We take a brief look into these questions in this report.

This report will help you understand, why shoppers Showroom, who the main culprits are, and how it is catching on in the UK.

Table of contents:

Key Findings & Summary

Introduction to Showrooming

What’s In This Report

Showrooming
Introduction
By Category
Demographics
Smartphone Ownership
Why Shoppers Showroom?
Focus Group
How Can Retailers Fight Back?
Summary
Evolution’s View

Methodology

Glossary

Statistics

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Showrooming in F&G 2013 Showrooming in F&G 2013 Presentation Transcript

  • Evolution Insights: Shopper Insight Series Showrooming 2013 Current Attitudes to Showrooming by Shoppers SAMPLE EXRACT Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com www.evolution-insights.com SAMPLE EXTRACT ONLY
  • About Evolution InsightsEvolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespokeresearch for manufacturers, retailers and agencies. Our research and analysis helps • Evolution offer a range of products & services for clients develop targeted shopper clients in the field of shopper research:- marketing initiatives designed to • Off-the-shelf research influence shoppers at the point of purchase. – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our We use a range of research regular shopper research projects in advance of publication, tailoring the methodologies to discover genuine scope to suit your needs insights. Our research incorporates a broad spectrum of robust • Bespoke Consulting qualitative and quantitative research techniques. – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects As a leading publisher of shopper – helping to better inform and shape research, we are ideally placed to any further research requirements. offer your business actionable shopper insight. Further information is available at our website http://www.evolution- insights.com Visit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Key Findings and Summarywww.evolution-insights.com SAMPLE EXTRACT ONLY 3
  • Introduction to Showrooming - DefinitionSince the advent of the internet, consumers have found it increasingly easier to research better deals online. As we move into 2013,reports show that mobile internet is more popular than ever before, due to advances in technology alongside a faster and morewidespread broadband connection. These factors have contributed in forming a new shopping trend: Showrooming. Showrooming is the practice of visiting a store to browse a product then purchasing it online. Online shopping is forever on the rise due to its convenient nature and cheaper prices. However, many shoppers feel the need to see or try the product in person first. The consumer focus on mobile internet and advanced technology such as smartphones and tablets makes it easy to compare prices in store, causing a threat to the high street. Ahh, its cheaper online!! £?! www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Introduction to Showrooming - DefinitionLets look at that page again… Type 1 are Active Showroomers Type 2 are Passive Showroomers Shoppers may or may not enter the store with the purpose of Showrooming. However, in hindsight we may consider their actions to be Which items are the most likely Showrooming. The shopper does not necessarily have to check the item to be Showroomed? online before going into the shop, the act of Showrooming may begin while • High cost in-store (if they then go on to purchase • Large items the item online). • Low frequency of purchase www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Introduction to Showrooming – Retailers AffectedThe effects of buying cheaper products online surfaced in the run up to Christmas 2012; due to the practice ofshowrooming the British high street lost an estimated half a billion pounds in revenue. The new savvy shoppers have leftsome retailers in a difficult position as they enter into 2013. Studies show that showrooming is on the rise with figures increasing from 28% to 38% of shoppers partaking in the ‘revolutionized shopping experience’ in just over a year. Who are at a disadvantage?Who are benefitting fromthe trend? Some dispute the notion that showrooming is putting stores at a disadvantage. Although a staggering 82% of shoppers admit to hitting the stores with smartphones in hand, 3 in 10 of said shoppers didn’t buy from competitors but purchased the product in store or from the store website. www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Showrooming – This ReportWith the recent demise of many high street regulars such as HMV, Jessops and Republic, is itnot surprising that people are looking for a scapegoat for increasing declines in sales, and this isseemingly falling onto internet shopping, and more specifically, the new phenomenon ofShowrooming. Retailers whose main proposition is a physical store are thought to be generallyon the back foot as they invest largely in retail space, staff, inventory etc., in a way which theironline competitors do not have to. The difference in these overheads allows online stores tooffer shoppers higher discounts on their goods, effectively undercutting physical stores on thesame products…Convenience is key. If shoppers can get the same product cheaper while sat at their desk, or intheir pyjamas at 2am, what is their motivation to go into a busy shopping centre, or a cold andrainy town centre? Perhaps the motivation isnt strong enough. And therein lies the problem forhigh street stores. What do they really offer that an online store doesn’t?.. www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Methodologywww.evolution-insights.com SAMPLE EXTRACT ONLY 8
  • MethodologyEvolution’s methodology Evolution carried out a preliminary survey of 100 shoppers , to test questions for the main survey. Detailed secondary and desk research was Secondary and Preliminary conducted to define the digital shopper desk research quantitative survey marketing landscape, macro drivers and trends, scope and examples of initiatives to date. Initial insights gained were used to help further design the main survey. The main survey was completed by 1,193 UK adults who said they regularly shop for food Main quantitative & grocery. Focus groups survey Comprehensive and detailed assessment of all the data received was then used to discover insights. Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. Insights Evolution’s consultants also maintain close relationships with industry figures across retailers and manufacturers. www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Methodology - Quantitative SurveyTopics of questions in quantitative survey Detailed shopper insights were gained from Demographic profiling a survey of 1193 UK adults who say they regularly shop for food and grocery and own a smartphone. The samples were fully representative of the UK population. The survey contained 3 questions relating to Ownership of Smartphone Showrooming – in addition to standard demographic profiling questions. The survey was carried out online during February 2013. Who is Showrooming (categories) Reasons for Showrooming Advantages of Showrooming www.evolution-insights.com SAMPLE EXTRACT ONLY
  • Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6035 e-mail: craig.bradley@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom www.evolution-insights.com SAMPLE EXTRACT ONLY